Underpayment of Estimated Tax by Corporations

California Tax Form 5806: Underpayment of Estimated Tax by Corporations

Use the California Tax Form Calculator California Tax Form 5806: Underpayment of Estimated Tax by Corporations as a stand alone tax form calculator to quickly calculate specific amounts for your 2019 California state tax return. California Tax Form 5806: Underpayment of Estimated Tax by Corporations is also integrated into our comprehensive California State Tax Calculator where you can complete and save your calculations for later use. Alternatively you can use one of our Combined Federal and California State Tax Estimator to quickly calculate your salary, tax and take home pay in California.

Underpayment of Estimated Tax by Corporations

Part I Figure the Underpayment

1

Current year’s tax. See instructions

1

(a)

(b)

(c)

(d)

2

Installment due dates. See instructions

2

3

Percentage required. See instructions

3

30%

70% less 1st

70% less prior

100% less prior

4

Amount due. See instructions

4

5a

Amount paid or credited for each installment

5a

b

Overpayment from previous installment. See instructions

5b

6

Add line 5a and line 5b

6

7

Underpayment (subtract line 6 from line 4). See instructions. Overpayment (subtract line 4 from line 6). If line 7 shows an underpayment for any installment, go to Part IV, Exceptions Worksheets

7

Part II Exceptions to the Penalty. If Exception A, line 8a is met for all four installments, do not attach this form to the return. If Exception B or C is met, for any installment, attach form FTB 5806 to the back of Form 100, Form 100W, Form 100S or Form 109.

(check the applicable boxes)

Yes

No

Yes

No

Yes

No

Yes

No

8a

Exception A – Regular Corporations, line 26

8a

b

Exception A – Large Corporations, line 30. See instructions

8b

9

Exception B (line 42) met?

9

10

Exception C (line 64) met?

10

Part III Figure the Penalty. If line 7 shows an underpayment for any installment and one of the three exceptions was not met, figure the penalty for that installment by completing line 11 through line 22.

11

Enter the earlier of the payment date, or the 15th day of the 3rd month after the close of the taxable year. Form 109 filers, see instructions

11

12

Number of days from date shown on line 2 to date shown on line 11

12

13

Number of days on line 12 before 7/01/17, or the payment date, whichever is earlier

13

14

Number of days on line 12 after 6/30/17 and before 1/01/18, or the payment date, whichever is earlier

14

15

Number of days on line 12 after 12/31/17 and before 7/01/18, or the payment date, whichever is earlier. Calendar year corporations, see instructions

15

16

For fiscal year corporations only. Number of days on line 12 after 6/30/18 and before 1/01/19. See instructions

16

17

For fiscal year corporations only. Number of days on line 12 after 12/31/18 and before 2/15/19. See instructions

17

18

Number of days on line 13/Number of days in taxable year * 4% * line 7

18

19

Number of days on line 14/Number of days in taxable year * 4% * line 7

19

20

Number of days on line 15/Number of days in taxable year * 4% * line 7

20

21

Number of days on line 16/Number of days in taxable year * (see instructions)% * line 7

21

22

Number of days on line 17/Number of days in taxable year * (see instructions)% * line 7

22

22a

Add amounts for each column from line 18 through line 22

22a

22b

Total estimated penalty due. Add line 22a, column (a) through column (d). Enter here and on Form 100, line 43a; Form 100W, line 40a; Form 100S, line 42a; or Form 109, line 27

22b

Part IV Exceptions Worksheets. Even if line 7 shows an underpayment for any installment, the Franchise Tax Board will not assess a penalty if timely payments were made and they equal or exceed the amount determined under any of the three exceptions for the same installment period.

23

Prior year’s tax (the return must have been for a full 12 months)

23

(a)

(b)

(c)

(d)

30%

70%

70%

100%

24

Enter line 23 x the percentage shown

24

(not less than min.)

25

Amount paid by the installment due date (cumulative)

25

26

If line 25 is greater than line 24, the exception was met. Check “Yes” here and check the applicable “Yes” box in Part ll, line 8a. If line 24 is greater than line 25, the exception was not met. Check “No” here and check the applicable “No” box in Part ll, line 8a

26

Yes

No

Yes

No

Yes

No

Yes

No

Exception A — Prior Year’s Tax — Large Corporations

Use this exception only if prior year tax is less than current year tax.

27

Current year’s tax

27

1st Installment

2nd Installment

28a

Installment due. Enter line 23 x 30%

28a

b

Installment due. Enter line 27 x 70%

28b

29

Amount paid by the installment due date (cumulative)

29

30

If line 29 is greater than line 28 for both installments, the exception is met. Check “Yes” here for each installment and check the applicable “Yes” box in Part II, line 8b. The exception to the penalty applies only if line 29 is greater than line 28 for both installments. If line 28 is greater than line 29 for either installment, the exception is not met. Check “No” here and check the applicable “No” box in Part II, line 8b

30

Yes

No

Yes

No

See instructions regarding amounts to use for installment 3 and installment 4.

Exception B — Tax on Annualized Current Year Income

(a)

(b)

(c)

(d)

Enter number of months for each period. See instructions ▸

31

Enter taxable income for each annualization period

31

32

Annualization amounts. See instructions

32

33a

Annualized taxable income. Multiply line 31 by line 32

33a

b

R&TC Section 23802(e) deduction (S corporations only)

33b

c

Net income. Subtract line 33b from line 33a

33c

34

Tax. Multiply line 33c by the current tax rate

34

35

Tax credits for each payment period

35

36

Subtract line 35 from line 34

36

37

Other taxes*

37

38

Total tax. Add line 36 and line 37

38

39

Applicable percentage. For short period returns (taxable year of less than 12 months), see the instructions for Part I, line 3

39

30%

70%

70%

100%

40

Installment due. Multiply line 38 by line 39

40

41

Amount paid by the installment due date (cumulative)

41

42

If line 41 is greater than line 40, the exception was met. Check “Yes” here and check the applicable “Yes” box in Part ll, line 9. If line 40 is greater than line 41, the exception was not met. Check “No” here and check the applicable “No” box in Part ll, line 9.

Enter taxable income for each period for the taxable year beginning in 2017

44

45

Enter taxable income for the following periods:

1st 4 months

1st 6 months

1st 9 months

Entire year

a

Taxable year beginning in 2014

45a

b

Taxable year beginning in 2015

45b

c

Taxable year beginning in 2016

45c

46

Divide the amount in each column on line 43a by the amount in column (d) on line 45a

46

47

Divide the amount in each column on line 43b by the amount in column (d) on line 45b

47

48

Divide the amount in each column on line 43c by the amount in column (d) on line 45c

48

49

Add line 46 through line 48

49

50

Divide line 49 by 3

50

51

1st 4 months

1st 6 months

1st 9 months

Entire year

a

Divide line 44 by line 50

51a

b

R&TC Section 23802(e) deduction. (S corporations only)

51b

c

Net income. Subtract line 51b from line 51a

51c

52

Tax. Multiply line 51c by the current tax rate

52

53

Divide the amounts in column (a) through column (c) on line 45a by the amount in column (d) on line 45a

53

54

Divide the amounts in column (a) through column (c) on line 45b by the amount in column (d) on line 45b

54

55

Divide the amounts in column (a) through column (c) on line 45c by the amount in column (d) on line 45c

55

56

Add line 53 through line 55

56

57

Divide line 56 by 3

57

58

Multiply the amounts in column (a) through column (c) of line 52 by the amounts in the corresponding column of line 57. In column (d), enter the amount from line 52, column (d)

58

59

Tax credits for each payment period

59

60

Subtract line 59 from line 58

60

61

Other taxes*

61

62

Total tax. Add line 60 and line 61

62

63

Amount paid by the installment due date (cumulative)

63

64

If line 63 is greater than line 62, the exception was met. Check “Yes” here and check the applicable “Yes” box in Part ll, line 10. If line 62 is greater than line 63, the exception was not met. Check “No” here and check the applicable “No” box in Part ll, line 10

64

Yes

No

Yes

No

Yes

No

Yes

No

Tip: use the California Tax Calculator to edit your refundable and non-refundable tax credits including California Tax Form 5806: Underpayment of Estimated Tax by Corporations. Complete, Calculate, print and or save your tax calculation for later use.